Celukan Bawang power station

The Celukan Bawang power station is a proposed coal-fired power station in Celukan Bawang, Buleleng regency, North Bali, Indonesia.

Reports of the size of the project vary, with one source reporting 340 megawatt (MW),, a second source reporting 400 MW, and a third source reporting 780 MW.

In October, 2010, the government of Indonesia signed a US$1.5 billion memorandum of understanding with two Chinese companies, China Huadian Engineering Corporation Ltd and China Huadian Development. The cost of the plant itself would be Rp. 7 trillion (US$761 million). Both are subsidiaries of China Huadian Corporation.

According to an article in The Jakarta Post, the Celukan Bawang power station is part of an effort to overcome a deficit of electricity on Bali. The island currently has access to 647.6 MW of electrical capacity:
 * Pesanggaran diesel (11 units) - 70.754 MW
 * Pesanggara gas (4 units) - 125.45 MW
 * Gilimanuk gas (1 unit) - 133.8 MW
 * Pamaron gas (2 units) - 97.6 MW
 * Total generating capacity: 427.604 MW
 * Underwater cables (Ketapang-Gilimanuk) providing 220 MW from the Java grid. The Bali Cross Project will provide an additional 1,600 MW of capacity to Bali.

Project Details
Sponsor: Unknown. Currently all other power generation on Bali is owned by PT Indonesia Power, Unit Pembangkitan Bali (PT Indonesia Power, Bali Generating Business Unit). Press reports have implied that this project will be owned by a subsidiary of China Huadian Corporation operating as an independent power producer. Location: Celukan Bawangg, Buleleng regency, North Bali Capacity: reports vary Type: Projected in service: 2012 Status: in planning
 * 340 MW,
 * 400 MW,
 * 780 MW,
 * 3 units of 142 MW each for a total of 426 MW

Project sold as "clean coal" power
According to one report, among the purposes of Bali Governor Made Mangku Pastika in traveling to China in 2010 was to determine whether the proposed coal plant would be a double or triple combustion project: "I wanted to know if [ the project ] is environmentally friendly. Double or triple? If it is single burn the result is sulfur which is still dangerous. If the by proudcts are processed again the results are environmentally friendly."

Coal development in the context of China's economic push into Southeast Asia
The development of the Celukan Bawang power station is part of an strategic push by China's National Development and Reform Commission (NDRC) to develop projects in Southeast Asia, with Indonesia a particular target of investment.

On January 1, 2010, China and the 10 nations that make up the Association of Southeast Asian Nationas (ASEAN) officially launched the China-ASEAN Free Trade Area. According to Zhang Guobao, vice-mininster of NDRC, "China is encouraging domestic firms to invest in Indonesia by actively participating in electricity, coal and gas-oil projects." According to the China Daily, Chinese projects in ASEAN countries are backed by capital and policy support from the central government.

In 2011, construction is expected to be completed on a 350 MW coal plant in the Indonesian beach-resort town of Pelabuhan Ratu.

Indonesia hydropower and coal projects
In September, 2010, China Daily reported that China Huadian Corporation (CHD) had embarked on a "going abroad" path by launching the 180 MW Asahan No 1 hydropower plant in North Sumatra, Indonesia. The company established a branch in Indonesia in August 2010, which became the first foreign-funded company licensed to operate a power plant in Indonesia. CHD Power Plant Operation Co (PPOC) general manager Jin Yingjun said, "Through this project, we have developed a new model for running power stations overseas. We aim to build up our team through this project and then further press ahead overseas." The National Development and Reform Commission (NDRC) approved a plant for China Huadian Engineering Company to build a 130 MW coal-fired power plant on Batam island, Indonesia. In 2009, CHD signed plant operations deals with Indonesia and Malaysia valued at $200 million.

Vietnam coal project
According to a September 2010 article in China Daily, the company "is currently seeking to build a thermal plant in Vietnam and they are conducting the negotiation with the relevant foreign parties."

Russia project
It was reported in 2010 that CHD will fund a turbine construction project in Russia.

Singapore subsidiary
China Huadian Hong Kong Company will set up its first subsidiary in Singapore.

Cambodia, Malaysia, Cyprus, and Cayman
Following the establishment of its Singapore subsdiary, China Huadian Hong Kong Company planned to set up branches in Cambodia, Malaysia, Cyprus, and Cayman. The company also planned to explore coal mine development.

Finance
According to a 2010 report in China Daily, the company partners with China Africa Cooperation fund and the ASEAN fund to develop its projects.According to Fu Weixiong, general manager of China Huadian Hong Kong Company, "Multiple fundraising channels provide solid support for CHD's global expansion."

Alternative power sources

 * Indonesia's geothermal potential

Unanswered Questions

 * Ownership: Who will own the plant? Currently all other power generation on Bali is owned by PT Indonesia Power, Unit Pembangkitan Bali (PT Indonesia Power, Bali Generating Business Unit). Press reports have implied that this project will be owned by a subsidiary of China Huadian Corporation operating as an independent power producer.
 * Finance: Who is financing the project? One press report suggest the Chinese central government as a possible source of funding.
 * Technology: What technology will be used by the plant?
 * Economics: What will the effect of rising Pacific Rim coal prices be on the long-term economics of the plant? What effect will the plant have on electricity rates on the island of Bali?
 * Impacts: What will be the environmental and social impacts of the plant?
 * Regulation: What regulatory requirements and permits are needed to initiate and complete construction?
 * Clean alternatives: What is the potential for geothermal, photovoltaic, and other green sources to offset the need for the plant
 * Need for the plant: What studies have been conducted regarding the need for the power? What is the status of the 1200 interconnect from Java, and how might that interconnect reduce the need for increased power generation on Bali?

Related SourceWatch articles

 * China and coal
 * Indonesia and coal
 * China Huadian Corporation

External resources

 * Indonesia Power website
 * PT INDONESIA POWER: Bali Business Unit Flyer
 * Buleleng guide, Bali regencies
 * China Huadian Engineering Co., Ltd.